Seremban Engineering BhdXKLS:5163 32 Operating Margin % is 8.68% as of Mar. 2026, which is 304% above its 10-year median of 2.15. GuruFocus rates XKLS:5163 with a GF Score™ of 32/100 and a GF Value™ of RM0.24 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 3,038 Industrial Products companies, Seremban Engineering Bhd ranks better than 87.26% on this metric.
Seremban Engineering Bhd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Seremban Engineering Bhd's Operating Margin % or its related term are showing as below:
XKLS:5163'
s Operating Margin % Range Over the Past 10 Years
Min: -8.62 Med: 2.15 Max: 17.19
Current: 17.19
XKLS:5163's Operating Margin % is ranked better than 87.26% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs XKLS:5163: 17.19
Seremban Engineering Bhd (XKLS:5163) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Seremban Engineering Bhd Operating Margin % Related Terms
Seremban Engineering Bhd Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XKLS:5163 vs ATI, CRS, MLI: Operating Margin % Comparison
For the Metal Fabrication subindustry, Seremban Engineering Bhd's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Seremban Engineering Bhd Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Seremban Engineering Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Seremban Engineering Bhd's Operating Margin % falls into.
Seremban Engineering Bhd Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Seremban Engineering Bhd's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Seremban Engineering Bhd (XKLS:5163) has a Operating Margin % of 8.68% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Seremban Engineering Bhd and its competitors. This is 304% above median its historical median of 2.15. According to the industry distribution chart, Seremban Engineering Bhd ranks #387 out of 3038 companies in the Industrial Products industry, placing it in the top 12.7%.
Is Seremban Engineering Bhd's Operating Margin % too high?
Seremban Engineering Bhd's current Operating Margin % of 8.68% is 304% above median its 10-year median of 2.15. The Industrial Products industry median Operating Margin % is 6.53. Seremban Engineering Bhd's value of 8.68% is 32.9% above this industry median. Based on the distribution chart, Seremban Engineering Bhd ranks #387 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Seremban Engineering Bhd has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Seremban Engineering Bhd's Operating Margin % compare to ATI and CRS?
According to the Industrial Products industry distribution chart, Seremban Engineering Bhd ranks #387 out of 3038 companies for Operating Margin %. This places Seremban Engineering Bhd in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Seremban Engineering Bhd's value of 8.68% is 32.9% above this benchmark. While the company's 10-year median is 2.15 vs. the industry median of 6.53, Seremban Engineering Bhd has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Seremban Engineering Bhd's current Operating Margin % of 8.68% is 32.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Seremban Engineering Bhd and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Seremban Engineering Bhd's current Operating Margin % is 8.68%, which is 304% above median its own 10-year median of 2.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Seremban Engineering Bhd stock overvalued right now?
Based on GuruFocus' analysis, Seremban Engineering Bhd (XKLS:5163) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.24, compared to a current price of RM0.65 — trading 168.8% above its estimated fair value. The current Operating Margin % is 8.68%, which is 304% above median its 10-year median of 2.15 and 32.9% above the Industrial Products industry median of 6.53. Seremban Engineering Bhd's overall GF Score™ is 32/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Seremban Engineering Bhd (XKLS:5163), the current Operating Margin % is 8.68% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Seremban Engineering Bhd (XKLS:5163) Overvalued in 2026?
Based on GuruFocus' analysis, Seremban Engineering Bhd stock appears to be overvalued.
The current stock price of RM0.65 is trading 168.8% above its estimated GF Value™ of RM0.24.
GuruFocus considers Seremban Engineering Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5163:
Operating Margin %: 8.68% (304% above median its 10-year median of 2.15)
GF Value™: RM0.24 vs. price of RM0.65 (168.8% above fair value)
Industry Position: 32.9% above the Industrial Products median (#387 of 3038)
No single metric tells the full story. See the XKLS:5163 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Seremban Engineering Bhd is engaged in providing engineering services including fabrication, engineering support, maintenance, and shutdown work for oil and fats, palm oil refineries, water treatment, food, chemical plants, and oil and gas industries. The products and services provided by the company include the Design, fabrication, and installation of unfired pressure vessels, reactors, heat exchangers, oil heaters, towers and columns, deodorisers, and receiver tanks, Fabrication and erection of steel structures and platforms and the Fabrication and piping works. Geographically, the company operates in Asia, Europe, Malaysia, and Singapore of which Malaysia generates the maximum revenue.
32GF Score
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